Stock market's major indices mixed amid SVB uncertainties, bank trading halts
Doubts linger about the ability of the FDIC to backstop depositors in their entirety.
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The stock market's major indices posted mixed results on Monday amid lingering uncertainty after the collapse of several regional banks and doubts about the planned federal intervention to avert a financial crisis.
The DOW Jones Industrial Average finished down by 0.28%, coming in at 31,819.14. The index opened down from its previous close before rising on confidence the Treasury's plans, though that bounce again reversed.
The S&P 500, meanwhile, enjoyed a marginally more stable trading session but still closed at 3,855.76, down 0.15%, while the Nasdaq posted a modest gain of 0.45%, closing at 11,188.84.
Exchanges halted trading of several bank stocks amid volatility concerns in the aftermath of Silicon Valley Bank and Signature Bank's failings on Friday and Sunday, respectively. The trade halts of potentially volatile stocks may have served to boost the overall market's final numbers on Monday.
The Federal Deposit Insurance Corporation insures accounts up to $250,000 each, though Treasury Secretary Janet Yellen has vowed that depositors in the failed banks would fully recover their assets without passing the burden onto the taxpayers, according to CNBC.
Doubts linger, however, about the ability of the FDIC to backstop depositors in their entirety. Signature Bank has roughly $88.6 billion worth of deposits while Silicon Valley Bank has $175.4 billion. The FDIC's reserve meanwhile, only contains $128 billion, according to its latest quarterly report.
Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.
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